How much can you borrow?

The amount of money a lender can offer you will depend on your income (before tax), your credit scoring and the value of the property you wish to purchase. The lender will either offer the purchase price, or the value as given by a surveyor - whichever is lower. Lenders usually offer up to 90% of the value, and you provide the remainder as a deposit.

Your loan is likely to be around 3.5 times your salary, although certain professions may be eligible to borrow more. If you're looking for a joint mortgage, the lender will either add the amount of the second salary, or offer 2.5 times the combined salaries.

If you are unable to find the deposit, 100% mortgages are available, but may be subject to strict conditions, higher interest rates, and Higher Lending Charges (HLCs). HLCs are mandatory charges levied on top of the loan to protect the lender's investment. However, if you default on payments the mortgage company's insurer will reimburse the lender, while still claiming the money owed from you -- HLCs provide no protection for the borrower and is effectively money down the drain.

When applying for a mortgage, you should also consider how much you can actually afford to pay, not just how much you can borrow. Additional costs involved in buying a home include legal fees, stamp duty fees, land registry fees, valuation fees, survey fees, and any mortgage arrangement fees charged by the lender.